What sales are excluded from the Gross Revenues calculation for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Gross Revenues" means the revenues you receive from the sale of all products and services sold at, from, or through your Crepe de licious Business, whether or not sold or performed at or from the Crepe de licious Business, including the full redemption value of any gift certificate or coupon sold for use at the Crepe de licious Business (fees retained by or paid to third party sellers of such gift certificates or coupons are not excluded from this calculation), and all other income and revenue of every other kind and nature related to the Crepe de licious Business or Crepe de licious Business operation, whether for cash or credit, and regardless of collection in the case of credit, but not including: (a) any sales taxes or other taxes you collect from customers for, and thereafter pay directly to, the appropriate taxing authority; or (b) any bona fide refunds you make to customers.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, Gross Revenues include revenues from all products and services sold at or through the Crepe De Licious business, including the full redemption value of gift certificates or coupons. However, there are some exclusions to this calculation.
Specifically, the following are NOT included in the Gross Revenues calculation: (a) any sales taxes or other taxes you collect from customers for, and thereafter pay directly to, the appropriate taxing authority; or (b) any bona fide refunds you make to customers.
Crepe De Licious franchisees should be aware of exactly what constitutes gross revenue, as this figure is used to calculate royalty fees (6% of Gross Revenues) and advertising fees (3% of Gross Revenues).